What does it mean to have low strategic IQ? Failure to respond to the need for strategic change is the measure of its effects, but it doesn’t explain the causes or the symptoms. And there are many.
The Strategically Blind
Some firms are strategically blind – they cannot actually see the need for change. For some this is because they have no idea what strategy is – they are blissfully ignorant. It may come as a surprise to some that firms can be successful without a strategy, but it is quite common; without competition, is often possible to do well; it is only when competitors appear that a good competitive strategy is required. Read full blog
No financially successful firm wants to believe that failure could just be round the corner. But successful firms fail all the time, and they fail dramatically; years of stellar profit growth and then sudden collapse.
Once a firm hits the wall, it is difficult to recover. Turning round a large corporation takes great leadership, huge resources and a good deal of serendipity. A few, like IBM, come back from the brink and re-establish their leadership. Others, like Wang Laboratories, and instant photography king Polaroid simply disappear. But many such as Kmart, Circuit City or Kodak struggle on for years before they meet their end. It is a slow and painful death. Read full blog